Contract Law: Acceptance and Revocation
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Questions and Answers

Under the postal rule, when is acceptance considered valid?

  • When the acceptance is acknowledged by both parties
  • When the revocation is communicated
  • When the proposer receives the acceptance
  • When the acceptance is mailed by the acceptor (correct)

    • What must occur for revocation of acceptance to be valid against the acceptor?

  • The revocation must be communicated and put into transmission (correct)
  • The revocation must be acknowledged by the acceptor
  • The acceptor must receive the revocation before the acceptance is communicated
  • The revocation must be posted and received before the acceptance is considered valid

    • When does the revocation of acceptance become effective against the proposer?

  • As soon as the proposer posts the revocation
  • When the proposer has knowledge of the revocation (correct)
  • When it reaches the proposer's mailbox
  • After a specified time period has passed

    • In the given scenario, when did the acceptor's letter of acceptance become valid?

    <p>On October 11, when the acceptance was mailed</p> Signup and view all the answers

    What is indicated by instantaneous communication in the context of acceptances?

    <p>Acceptance takes immediate effect upon being communicated</p> Signup and view all the answers

    When is the communication of acceptance considered complete for the offeror?

    <p>When the acceptance is posted</p> Signup and view all the answers

    What condition allows the offeror to revoke an acceptance?

    <p>As long as the offeror is unaware of the acceptance</p> Signup and view all the answers

    For the acceptor, when is the communication of acceptance considered complete?

    <p>When the proposer acquires knowledge of the acceptance</p> Signup and view all the answers

    What is the main implication of the Postal Rule regarding acceptance communication?

    <p>Acceptance is valid once posted, regardless of receipt</p> Signup and view all the answers

    Which of the following statements is true regarding revocation of an offer?

    <p>An offer can be revoked at any time before acceptance is complete</p> Signup and view all the answers

    When is a proposal considered revoked under section 5(1)?

    <p>At any time before the communication of its acceptance is complete</p> Signup and view all the answers

    What does section 4(2)(a) state regarding the communication of acceptance?

    <p>It is complete when it is put into a course of transmission to the proposer</p> Signup and view all the answers

    Which of the following is true about instantaneous communication?

    <p>Acceptance is complete when the acceptor hears it</p> Signup and view all the answers

    According to the postal rule in section 4(2), when is communication of acceptance complete?

    <p>When the letter of acceptance is posted</p> Signup and view all the answers

    What must occur for an offer to be revoked legally?

    <p>The revocation must occur before the acceptance is communicated</p> Signup and view all the answers

    In what case does section 5(1) become applicable?

    <p>When the acceptance is given in person</p> Signup and view all the answers

    What happens if the acceptor does not post the acceptance yet?

    <p>The proposal can still be revoked by the proposer</p> Signup and view all the answers

    According to the content, when is the communication of revocation of an offer considered complete?

    <p>When it reaches the acceptor's knowledge</p> Signup and view all the answers

    Study Notes

    Revocation of Acceptance

    • Acceptance can be revoked at any time before the communication of its acceptance is complete, but not afterward.
    • Communication of acceptance is complete when the offeror receives the acceptance.
    • If an offeror has not received the acceptance, he can revoke the offer.

    When Acceptance is Complete

    • When the acceptor receives the acceptance (in the case of revocation)
    • When revocation is valid
    • S.4(3)(a), s.4(3)(b)

    Revocation of Offer

    • A proposal can be revoked at any time before the communication of acceptance is complete against the proposer.
    • Communication of acceptance is complete when put into a course of transmission to the proposer.
    • This is out of the power of the acceptor
    • A proposal can be revoked at any time before the letter of acceptance is sent.
    • Postal rule states that communication of acceptance is complete when the letter is posted.

    Instantaneous Communication

    • Postal rule still applies, but not s.4(2) .
    • Acceptance is complete when heard by the proposer regarding instantaneous communication.
    • No distinction between when it is complete against the proposer or acceptor.

    Case Study: Byrne & Co v Leon Van Tienhoven

    • Oct 1: D posts a letter of offer.

    • Takes 10-11 days to arrive.

    • Oct 8: D posts a letter of revocation.

    • Oct 11: P telegraphs acceptance.

    • Oct 20: P receives the letter of revocation of offer.

    • Question: When was the revocation of offer valid? YES

    • Question: When was the contract binding on D?

    Revocation of Acceptance

    • How: Act or omission, per s.3
    • When: Per s.5(2)
    • In line with s.4(2)(b)
    • Valid when revocation is valid according to s.4 (3)(a) & s.4(3)(b)

    Illustrations

    • B accepts A's proposal by a letter sent by post.
    • Communication of acceptance is complete against A when the letter is posted.
    • A revokes proposal by telegram.
    • Revocation is complete against A when dispatched and against B when received.
    • B revokes acceptance by telegram.
    • Revocation is complete against B when telegram dispatched and against A when it reaches him.

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    Related Documents

    Revocation PDF

    Description

    Explore the intricacies of acceptance and revocation in contract law. This quiz covers key concepts such as when acceptance is complete, the effects of instantaneous communication, and the postal rule in revocation of proposals. Test your understanding of these legal principles!

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